convertible bond

convertible bond - a bond that can be converted to other securities under certain conditions

bond certificate, bond - a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal

The former is consistent with the risk-shifting hypothesis, which predicts that convertible debt issues by firms with debt capacity are attributable to the riskiness of the firm's investment opportunities.

Pursuant to FASB ASC Topic 470-20, if a convertible debt instrument may be settled in cash or some combination of cash and stock upon conversion of the debt, then the Company is required to account separately for the liability and equity components of such convertible debt.

BioNitrogen today announced its intent to consolidate 100 million of its issued and outstanding common shares on the basis of 300 existing shares for 1 share for the holders of such 100 million shares that were issued in December 2011 as a settlement of a convertible note and debt dated as of February 15, 2007 (the Convertible Debt ).

04-8, The Effect of Contingently Convertible Debt on Diluted Earnings Per Share, that the effect of contingently convertible debt ("Co-Cos") should be treated from issuance date as part of diluted EPS, without regard to the "trigger" being reached on the contingent event.

In an effort to formulate guidance in this area, the IRS requested commentary from the public on (1) the tax treatment of the exercise of an option to acquire a partnership interest, (2) the exchange of convertible debt for a partnership interest and (3) the exchange of a preferred interest in a partnership for a common interest; see Notice 2000-29.

One, Accounting for Financial Instruments with Characteristics of Liabilities, Equity, or Both, would provide guidance on accounting for the noncontrolling interest in a consolidated subsidiary, for costs incurred in issuing a financial instrument that has liability or equity characteristics and for repayments and conversions of convertible debt.

If an investment below the 20 percent level does not provide sufficient funding for the dot-com, other financing methods may be employed, including convertible debt, preferred stock or warrants in the dot-com.

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